Investment is the key of development of any economy therefore investment and capital formation are a pre requisite for development. Agriculture sector is the primary sector of the economy if it remains underdeveloped than other sectors will also remain underdeveloped. So, it is essential to invest regularly in this sector. Agriculture sector lacks capital formation because Indian agriculture is mainly subsistence in nature. Technical agriculture needs huge investment. Thus, it is very important that we should be regular investment in agriculture. Present study tries to find out the status and determinants of capital formation in Agricultural sector of Rajasthan and India.

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Keywords: Capital Formation, Agriculture, Capital Formation, Determinants of Capital Formation.